Kenya’s 2021 diaspora inflows up 20pc on increased demand

NAIROBI, Kenya, Jan 20 –  Increased financial demand pushed Kenya’s diaspora inflows to a record USD 3,718 million in 2021 compared to USD 3,094 million reported in 2020 representing a 20 percent increase.

The figure surpasses the Central Bank of Kenya’s initial projections of USD 3.4 billion.

According to the Diaspora Remittances survey released by the Central Bank of Kenya, 82 percent of Kenyans in diaspora reported increased financial demand during the year which was characterized by economic uncertainties occasioned by various COVID-19 strains.

Forty-seven percent of the 1,321 respondents interviewed between 19 March and 17 May noted that they will continue to remit more funds back home.

The majority of the remittances were directed at family members, who are largely self-employed, unemployed, or students with half of the total remitted funds being allocated to investment in real estate (land and buildings) for recipients, mortgage payment for senders, and purchase of food and household goods.

“Overall, the pandemic appears to have had a minimal impact on access to financial services. The majority of the respondents in Europe, Latin America, and North America reported negligible effects. About 37 percent reported negative effects on access to financial services.

According to the survey, 39 percent of Kenyans in the diaspora were not affected by the COVID-19 pandemic compared to the 56 percent of the respondents who said they were negatively affected.

Thirty-nine percent of the respondents sent amounts below USD 2,000 while 23 percent sent amounts ranging between USD 4,001 and 10,000 in 2020.

Of those who remitted between USD 4,000 and USD 10,000, the majority were from Europe, Latin America/Caribbean, North America, and the rest of Africa.